Getting Ahead on Your Taxes During the Holiday Break

The Christmas break is not just a time for festivities—it’s also an opportunity to get a jump on tasks that will save you stress in the new year. One of the most productive ways to use your downtime? Getting ahead on your taxes.

Last year HMRC reported that 25,769 customers submitted their tax returns over the three-day festive period! This year, you could be one of them: our guide to preparing your tax return early could save you a lot of time, energy and stress – as well as help you know about tax breaks to take advantage of.

Read on for our helpful tips for maximising your efficiency – so you can get things done and still have plenty of time to relax over the break.

Why start early?

Tax season officially kicks off in January, but getting organised during the holidays offers several advantages:

Reduce Stress: Avoid the scramble of gathering paperwork close to the deadline.
Maximise Deductions: Reviewing your finances early gives you time to identify deductible expenses you might have overlooked or allowances you can take advantage of.
Plan for Payments or Refunds: Knowing your tax situation in advance helps you prepare financially, whether you owe taxes or are due for a refund.

Steps to get ahead

Preparing early can help you avoid the last-minute rush, uncover potential deductions, and possibly even receive your refund sooner. You can started by:

1. Gather important documents

The first way to get ahead is to start gathering the necessary forms and records. This includes:

Payslips, invoices from employers or clients.
Receipts for deductible expenses (e.g., charitable donations, uniforms and equipment, medical bills, other business costs).
Bank statements and investment records for reporting interest, dividends, or capital gains.

2. Organise your records

The holiday break is a perfect time to sort your financial documents into categories, either digitally or in a physical folder. You can make use of tools like expense-tracking apps or spreadsheets to streamline this process.

3. Estimate your tax liability

Use online calculators or tax software to get a ballpark estimate of your taxes. This can help you adjust your budget in case you owe money or make plans for your refund.

4. Contribute to tax-advantaged accounts

If possible, make last-minute contributions to your pension, ISAs or other accounts with tax benefits before the year ends. These contributions can lower your taxable income and help you save for the future.

5. Review changes in tax laws

Tax laws and bands often change from year to year. Spend some time researching updates that could affect your filings, such as adjustments to standard deductions, tax brackets, or credits like the Child Tax Credit or Income Tax Credit.

Allowances and deductions to look out for

Using your holiday downtime to get ahead on your taxes is a gift to your future self. While you’re at it, it’s also worth doing some research on any allowances or tax breaks you may be entitled to without realising.

We have a whole range of free guides to expenses you can claim back and refunds you can apply for. Check out the list below to see if you are eligible for any:

Marriage Tax Allowance

The Marriage Tax Allowance is a fantastic deal for married couples or civil partners – letting you share some tax benefits so you can save up to £252 a year. Don’t miss out – use our free guide or get some help from our recommended provider, who can submit the claim on your behalf.

Work expenses

If your job requires a uniform, specialist clothing or tools, you could be entitled to claim tax relief for these work-related expenses.

NHS worker rebates

Work for the NHS? Don’t miss out on some important forms of financial relief in the form of NHS-related tax rebates that you might not know about.

Working from home

If you regularly work from home, you can claim tax deductions for the associated extra costs – like heating and lighting. If you didn’t claim this during the year through your PAYE tax code, you can claim it through a tax return.

When to seek professional help

If your financial situation is complex—such as owning a business, managing investments, or navigating life changes like marriage or homeownership—it might be a good idea to schedule a consultation with a tax professional. Doing so early ensures you’ll get personalised advice and avoid the springtime rush.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.